ALLE vs WTS: Correlation
How closely do Allegion (ALLE) and Watts Water Technologies, Inc. (WTS) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALLE and WTS?
Over the past 3 years, ALLE and WTS moved with a correlation of 0.59, which is moderate. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 355.8 %².
Within ALLE's tracked universe of 33 assets, WTS comes in at #15 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months WTS outperformed by 38.3 percentage points (-6.4% for ALLE against +31.9% for WTS).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ALLE vs WTS: side by side
| ALLE (Allegion) | WTS (Watts Water Technologies, Inc.) | |
|---|---|---|
| 1-year return | -6.4% | +31.9% |
| 5-year return | +19.4% | +125.4% |
| Volatility (ann.) | 24.3% | 24.6% |
| Beta vs S&P 500 | 0.60 | 0.89 |
| Max drawdown (3Y) | -29.8% | -19.5% |
| Market cap | $13.6B | $12.4B |
| P/E (trailing) | 21.0 | 32.5 |
| Dividend yield | 1.32% | 0.58% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ALLE | WTS |
|---|---|---|
| 2022 | -19.3% | -24.1% |
| 2023 | +22.3% | +43.6% |
| 2024 | +4.7% | -1.6% |
| 2025 | +22.8% | +36.8% |
| 2026 | +1.1% | +35.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALLE and WTS good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ALLE and WTS?
The ALLE/WTS correlation stands at 0.59 on a 3-year window (1 year: 0.59, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is WTS a good diversifier for ALLE?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.59 mean?
On the −1 to +1 scale, 0.59 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: ALLE correlations · WTS correlations
